Senate President Juan Miguel “Migz” Zubiri and Senate President Pro Tempore Loren Legarda have vowed to pursue the ratification of the Regional Comprehensive Economic Partnership Agreement (RCEP) even as they committed to ensure that the concerns of farmers on the world’s biggest free trade pact would be addressed by the government.
During the hearing of the Senate Subcommittee on Foreign Relations that is tackling the Senate’s concurrence on the RCEP, Legarda assured that the farmers' issues are heard and answered by the concerned agencies.
“The Senate leadership is one with you. Iisa-isahin ano ang issue ninyo at didinggin ng lahat ng ahensya ng gobyerno. Ito ba’y nasa probisyon ng RCEP? Ito ba’y talagang makakasama? O baka may panukalang batas na dapat gawin para masolusyunan ang inyong concerns. Kami po ay nandito para sa inyo,” she said (List your issue individually and all government agencies will listen. Is this in the RCEP provision? Is it really going to hurt? Or maybe there is a bill that should be made to solve your concerns. We are here for you),” Legarda said.
Agricultural groups have opposed the ratification of RCEP due to fears local farmers are not ready to compete with cheaper agricultural imports.
Zubiri, however, said such fear is misplaced since tariffs of key agricultural products such as rice, sugar and corn will continue to be protected by their present applicable tariffs even if the Philippines joins RCEP.
The RCEP, the Senate leader also said, does not prevent the country from continuously improving its domestic support to resolve problems on productivity and smuggling, among others.
Zubiri said the Senate expects to ratify the trade agreement within the first quarter of 2023.
“We need it. RCEP is 10 countries of ASEAN (Association of Southeast Asian Nations), together with Japan, South Korea, China, New Zealand and Australia,” Zubiri said in a recent interview.
“If we do not sign it, it will affect our semiconductors, it will affect our imports, exports,” the Senate leader pointed out.
Among the issues raised by groups opposing the RCEP is that a free trade agreement among its member economies would lower the tariffs on certain products, leading to an increase in imported food products.
According to them, it will not protect the Philippines' agricultural produce as it would bring down local prices and eventually harm local farmers' earnings.
Moreover, they pointed out there are already existing free trade agreements with RCEP member countries.
Department of Trade and Industry (DTI) Secretary Alfredo Pascual defended RCEP and assured that the government will continue to provide the needed support and level the playing field for local businesses.
"RCEP provides a framework of rules and disciplines to ensure regulatory consistency, creating a conducive business environment that is key to ensuring the confidence of the business sector and spurring further economic growth," Pascual explained.
"While we recognize the concerns raised by some sectors, it is important to understand the bigger picture and view RCEP in terms of the opportunities it can bring to us," he also said.
Legarda said she shares the concerns with the farmers being a farmer herself, but also considers the benefits that the country could get from RCEP.
“Ramdam ko kayo at pinag-aaralan ko ito. On the other hand, naiintindihan ko rin kasi hindi tayo puwedeng maiwanan sa ASEAN (I feel you and I studied it. On the other hand, I also understand the need to join the RCEP because we cannot be left behind in the ASEAN," she said.
To address their concerns, Legarda said stakeholders would be consulted to help draft the guidelines, which will be part of the Senate's concurrence to the agreement's ratification.
The Senate President pro tempore said she would add environmental and sustainability provisions in the guidelines since those are not included in the RCEP rules. A special oversight committee on RCEP shall likewise be created.
"We will come up with guidelines, policies, programs, funding, resources, commitments, and oversight that will ensure that the agencies who negotiated for this — (the Department of Agriculture) who are mandated to bring about a robust agricultural sector, and the DTI (Department of Trade) to bridge the trade deficit — will do better than better, will do their best," Legarda said.
Only the Philippines has yet to complete the ratification process among the 15 signatory economies to the RCEP which is expected to open a wide range of market opportunities for investors, especially export-oriented enterprises.